April 17, 2014

Oil sands players no longer keeping it all bottled up

Imagine bitumen as the ketchup and an oil sands operation as the bottle (except for the edibility part, of course).

Photo Credit: iStockPhoto

Traditionally, getting more bitumen out of an existing site required the oil sands production equivalent of arduously hammering the bottle with your palm – large capital expenditures, elaborate new facilities and an increased development footprint.

Debottlenecking

But these days, Suncor and other established players are looking to add production without spending big dollars or upsizing their sites.

The growth is being pursued through something known in industry circles as “debottlenecking.”

Because they involve tweaking what already exists, debottlenecking projects have great appeal for oil sands operators because they’re lower risk and require less capital investment than expanding facilities. Such projects also draw on existing operational know-how backed by years of experience.

Suncor, for example, is pursuing several debottlenecking projects (see slide 14 in this PDF presentation). One of these efforts involves better management of diluent, which is blended with thick bitumen to make it flow easily through pipelines. After all, the more diluent we can store, the more bitumen we can sell.

Another project at Suncor’s MacKay River in situ facility involves capturing more of the steam generated on-site for use in underground bitumen extraction.

While debottlenecking is an option for Suncor and other established players, it isn’t for newer oil sands companies still working to establish operations.

As observers note in this report, the focus on debottlenecking is a hallmark of a maturing oil sands industry.

Asset reliability, operational performance

Over time, oil sands companies will continue to move toward asset reliability and operational performance over rapid growth, and debottlenecking is just one way industry is making the most out of its abundant resources.

While being “slow good” may be a virtue in the world of condiments, it certainly isn’t when it comes to adding the bitumen production needed to help satiate the world’s energy appetite.

OSQAR is taking a break

Like many of you, OSQAR will be taking a break over the Easter holidays. Look for our next post on April 30.

Oil Sands Question and Response (OSQAR) is a blog created by Suncor Energy to support constructive dialogue about the oil sands. In our weekly posts, we talk about the energy industry, environmental impact, tailings management and reclamation, water management and the social and economic implications of oil sands development.

Our oil sands operations are near Fort McMurray, Alberta, where we recover bitumen from oil sands through mining and in situ operations. The bitumen from both operations is then upgraded to refinery-ready feedstock and diesel fuel. More about the where and the what of the oil sands can be found on our oil sands resource page.